(A) A liquor license shall be purely a personal privilege, good for a term not to exceed the period for which the same is issued unless sooner revoked, as provided in this subchapter, and shall not constitute property, nor shall it be subject to attachment, garnishment or execution nor shall it be alienable or transferable, voluntarily or involuntarily, or subject to being encumbered or hypothecated. Such license shall not descent by the laws of testate or intestate devolution, but it shall cease upon the death of the licensee, provided that the executors or administrators of the estate of any deceased licensee and the trustee of any insolvent or bankrupt licensee, when the estate consists in part of liquor, under order of the appropriate court, may exercise the privileges of the deceased or insolvent or bankrupt licensee after the death of such license but not linger more than six months after the death, bankruptcy or insolvency of such licensee.
(B) When the licensee is a corporation or limited liability company, the license shall terminate whenever 50% or more of the ownership interest therein changes from that shown on the original license application. In such event, the corporation or limited liability company, through its officers, must make application for the issuance of a new license as provided herein; provided, however, that the provisions of this subsection shall not apply where the transfer of an ownership interest is made to an owner shown on the original license application who owned 50% or more of the ownership interest of such corporation or limited liability company at the time the original license application was filed with the city.
(C) When the licensee is a partnership or corporation or limited liability company, no change in ownership from that shown on the original application involving the addition of a new partner of such partnership or a new shareholder of the corporation, or a new member of the limited liability company, who will have an ownership interest in the aggregate more than 5%, shall be effective until such proposed change in ownership has first been reported in writing to the Local Liquor Commissioner and said Commissioner finds that the proposed new partner, shareholder or member is not ineligible under the provisions of this subchapter and so advises the licensee in writing. Any change in ownership without complying with the terms hereof shall constitute grounds for revocation of the liquor license issued pursuant hereto.
(D) Any licensee may seek to renew his or her license at the expiration thereof pursuant to the provisions of this subchapter provided he or she is then qualified to receive a license and the premises for which such renewal license is sought are suitable for such purpose; and provided, further, that the renewal privilege herein provided for shall not be construed as a vested right which shall in any case prevent the Board of Trustees from decreasing or increasing the number of licenses to be issued within the city, nor shall it limit or restrict the right of the city to at any time amend or repeal any or all provisions of this subchapter.
(E) Notwithstanding any other provision herein, where ownership in a sole proprietorship, partnership, limited liability company or corporation is transferred solely to any person or persons found qualified pursuant to application under this code to hold a liquor license in the city and proven to be a parent or a son or daughter of the prior owner and where such transfer of ownership under this code requires the issuance of a new liquor license, no additional fee for a new liquor license shall be assessed for the year in which the transfer of ownership is made; instead, the fee for that year’s liquor license shall be pro-rated between or among the owners as follows:
(1) The first owner shall pay the entire amount; and
(2) The subsequent owner shall pay a pro-rated amount based on the date on which ownership is acquired; and
(3) Upon receipt of payment of the pro-rated amount the city shall return to the first owner that same pro-rated amount.
(F) Upon payment of the pro-rated amount a new license in the name of the new owner or owners shall be issued which shall be effective only for that portion of the year for which the prorated amount was paid.
(Ord. 2014-03-0488O, passed 3-25-2014)